KOLKATA

THE INDIAN Tea Association has asked its members to emphasise on production of orthodox varieties of tea this year.

"India has traditionally been a big exporter of orthodox varieties and to increase its foreign exchange earnings, we will have to export more and more such varieties," ITA said.

"Even though we are in the process of setting up this year's target, instructions have already been sent to members to increase orthodox production with a guiding principle of maintaining quality," ITA officials said.

The step had been taken because of two reasons. Firstly to sustain exports as country's traditional strength in tea exports was orthodox varieties and secondly if more orthodox teas were produced it would mean a fall in CTC output.

As country's domestic consumption was mainly the CTC varieties and at present domestic supply was in abundance, shifting towards orthodox would augur well for the industry, officials said. (PTI)

The Economic Times 10.04.2001

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CHENNAI, April 9

TEA production in the country declined by 700,000 kg to 37 million kg (mkg) during January-February this year compared to the same period a year ago.

Continuing the downtrend, the production declined by 500,000 kg in February to 16.2 mkg. South India was primarily responsible for the dip during the month as harvest takes place mainly in this region during January-February, according to the Tea Board.

During February, production in South India declined to 15.4 mkg against 15.9 mkg during the same period last year. The dip was mainly in Tamil Nadu where the output slipped to 9.9 mkg (10.7 mkg). While the production showed a rise of 400,000 kg in Karnataka to 5.2 mkg, it slipped in Karnataka by 100,000 kg to 300,000 kg.

Output in West Bengal was steady at 500,000 kg and in Assam it was stable at 300,000 kg.

However, for the January-February period, tea production in the North-Eastern region was down by 1.1 mkg to 7.7 mkg while in the south it was up by 400,000 kg to 29.3 mkg.

The tea sector continues to lay emphasis on orthodox production, which went by 700,000 kg during January -February to 5.7 mkg with South alone contributing 5.1 mkg (4.8 mkg)

CTC production was pegged at 31.1 mkg, down 1.4 mkg compared to the year-ago period, while other teas made up 200,00 kg.

The Hindu Business Line 09.04.2001

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GUWAHATI, April 9

THERE was good demand for the new season teas on offer at the Guwhati auctions last week. Medium Assams generally realised between Rs 85 and Rs 96 with better sorts selling between Rs 100 and Rs 110. Select best brokens witnessed competition and sold even higher at times.

Few plainer categories met with only limited enquiry at levels between Rs 70 and Rs 80. Old season categories sold at fully firm rates. The major blender did not operate. The primary source of demand emanated from the Western India markets with some interest from the local dealers for cheaper sorts. The exporters were also subdued.

There was nominal weight of new season dusts on offer. Medium Assam descriptions ranged between Rs 80 and Rs 90 with better varieties realizing Rs 100 to Rs 110. Selected top liquoring lines witnessed some competition and appreciated even further. Few plainer teas sold between Rs 70 and Rs 80. Old season teas were irregular around last. The major blender was absent with the other packeteers also remaining out of the market. There was fair enquiry from the Western India buyers with only some local interest. Old season teas,however, witnessed support from the internal markets.

Levels in the first sale for new season teas were generally Rs 5-10 lower than those prevailing in the opening sale last year. But, some teas were lower by even higher margins in comparison.

Arrivals during March at Guwahati this season showed an almost threefold increase compared to last year. Approximately 65,000 packages were received during the month as against 22,000 packages in both 2000 and 1999. Sale No. 17 closed with arrivals received upto April 4 at 53,473 packages as against 27,307 packages in the corresponding sale last year.

The Hindu Business Line 09.04.2001

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The Colombo Tea Traders Association on Friday officially endorsed a proposal by the Colombo Brokers Association to reduce the lead-time between cataloguing and auctioning of tea at the Colombo Auctions, tea broker John Keells said in a report.

Hitherto, the time duration between cataloguing teas for auctions and sale required a period of three weeks. The newly proposed system reduces the lead-time to two weeks. The benefits to the producer is enormous in terms of converting their produce to cash quickly thereby, improving cash flows, and quicker sales will reduce the period of borrowing on stocks and help reduce cost of funds.

It is also commendable to note the commitment by brokers and buyers who will now have to work on a much tighter schedule to ensure a smooth operation of the entire system, Keells said.

This system of cataloguing is expected to be effective from the auction of May 2 and a trial period of three months is proposed for evaluation.

Sunday Times 08.04.2001

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